Posts

Selecting an agent

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When a whole lobster was presented at the table of a restaurant, the customer noticed there was only one claw on it.He asked what happened to the lobster and the waiter said, maybe he lost a fight with another lobster.The customer replied to the explanation by saying "then, bring me the winner."There are approximately 1.3 million REALTORS® in the U.S.The July 2019 Existing Home Sales annualized about 5.4 million units with a listing side and a selling side that totals 10.8 million transactions.That means that the average number of units sold per agent is 8.In any given market, 20% of the agents are selling 80% of the homes.260,000 agents are selling 8,480,000 or an average of 32 transactions sides.Some markets are dominated by 10% of these successful agents selling 90% of the market.If that were the case, 130,000 agents are selling 9,720,000 or an average of 75 transactions sides.The question you should ask yourself is who do you want representing you in the purchase or sale…

Price It Right the First Time

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The Internet has empowered all buyers with information and home buyers are no exception.The amount of information available to public includes details on size, condition, sales history, current inventory, recent sales, photographs, videos, school info, drive-times, entertainment and much more.When a seller realizes that buyers are educated with facts, it becomes unlikely that they will pay more than a home is worth.If a home is priced too high in the beginning, it may stay on the market longer than normal which could adversely affect the ultimate sales price.It is a natural reaction from people, personally or professionally, to assume that something must be wrong with a home that doesn't sell in a reasonable time for that market.The seller is entitled to maximize the equity in their home and pricing it properly in the beginning is the best way to achieve that.Overpricing can reduce buyers activity because they assume that the best homes are purchased soon after they are offered fo…

What every homeowner should know about their property insurance

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Insurance is required on a home by the mortgage company, but homeowners rely on it for peace of mind also.Unfortunately, people may not take the time to investigate their policy and what it covers until they need to file a claim, which could be too late.While it may not seem like the best use of your time, an in-depth visit with your property insurance agent once a year could be valuable to you if you have losses and could increase your peace of mind.The following are some questions you can ask your insurance agent:What is the insured value of the policy and the replacement cost of your home?Insured value is the amount that would be paid for a total loss but replacing the home could cost more than that amount.What is the deductible?Higher deductibles on the first amount of the loss are one way to lower the cost of the premium.It may sound good when you're having to pay for the policy but feel very different at the time you file a claim.What does the policy cover? Typical policies …

Want to be a Landlord?

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Real estate has consistently been one of the highest rated investments available to individuals.  TV shows certainly make rentals look easy and you may even know someone who has made a lot of money with them.  Possibly, the thought has crossed your mind that if they can do it, you can too.Before you contract for your first investment, ask yourself some questions that could save you time and energy.  Not all people have the time, the inclination or even the skill to manage property.  Landlords need to be good business people who can maximize revenue and minimize expenses.  If investors don't have the skills and talent to handle some of the repairs, they at least need to know reputable and reasonable service professionals.Another important element is to be familiar with the state and local landlord tenant laws.  You'll need to know what are allowable security deposits and where the money can be held.  Knowing how long you have to return it to a tenant is important and what to do…

Money You Saved for a Down Payment

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Occasionally, buyers who can qualify to purchase a home decide to "take a break" and wait to purchase a home.When the focus of buying a home is relaxed, other uses for the money that was going to be used for the home are considered. Maybe they think how much fun it would be to have a Sea Doo or a motorcycle or a new car.It is amazing how many people would like to buy a home but either don't have the down payment, the income or the good credit to make it possible.Instead of spending the money, consider investing the money for two years until the time is right to buy a home.Let's look at putting the money in a certificate of deposit that earns 2% or in the stock market that could average a 5% return.Assume you were purchasing a $295,000 home on a FHA loan with 3.5% down payment.The $10,325 would grow to $10,742 in the CD which isn't a big increase but at least it is safe and secure, and it will be available when you're ready.If the same amount were invested in …

Downsizing is an Alternative

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It is estimated that over 15% of the population in the U.S. are over 65 years of age.With one of the most common fears of seniors being their money will run out early, it is understandable that downsizing may be strategy to meet their goals.Once the kids are grown, have careers, relationships and get a place of their own, parents find they may not need their "big" home like they did before.In other situations, their lifestyle might have changed, and the house just doesn't "fit" anymore.The benefits of a smaller home can include the following:Easier to maintainLower utilitiesLower property taxes Lower insuranceMore convenient locationSingle levelPossibly more energy efficientPossibly lower maintenanceLike any other big change in life, it is recommended that a person should take their time to consider the possible alternatives and outcomes.Are they going to stay in the same area?What type of property would suit their needs for the future?The tax-free exclusion al…

Steps in Home Buying Process

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The process of buying a home can be different based on the price range and whether a mortgage is needed.While some things are different, others are similar regardless of price, financing or local customs.Each year, the National Association of REALTORS® surveys buyers and sellers who have purchased or sold in the previous twelve months in order to identify the process and steps taken.It provides a lot of information for the people who will be going through the process now and in the near future.44% of all buyers looked online for properties for sale.This might be considered a logical first step to determine the prices of homes in certain areas and what features they offered.17% of all buyers stated that their next step was to contact a real estate agent.In another REALTOR study, it is reported that 87% of all buyers purchased their home through a real estate agent or broker.Buyers identify a wide range of services the agents offer that is considered valuable in the purchase of a home.T…